2023

A dynasty trust is a long-term, irrevocable trust designed to pass on and manage wealth for multiple generations. It allows individuals to transfer assets, such as money, property, investments, or closely-held business interests into a trust for beneficiaries (typically family members) while minimizing estate tax, gift and generation-skipping transfer (GST) taxes and protecting the assets from creditors and potential squandering.

The CTA was enacted to help the U.S. Government combat money laundering, terrorism, tax evasion, and other financial crimes by creating a national database of organizations in the U.S. that identifies the human beings behind the companies as owners or controlling persons.

Retention bonuses protect the: 1. Seller by keeping key employees incentivized to remain at the company and help the company achieve agreed upon targets after the sale of the company. Sellers may also have additional payouts that are “earned” and depend upon company results for some time after the sale during the “earnout period”. 2. Key employee by providing job security and incentives before, during, and after the sale of the company. 3. Buyer of the business by keeping the intellectual capital (key employee knowledge) with the company while the buyer learns the ins and outs of its new business.

An Irrevocable Life Insurance Trust (ILIT) is a powerful asset protection tool used in estate planning to help manage and distribute assets efficiently, minimize estate taxes, and provide liquidity to an estate.

One advantage of selling to a non-grantor trust is that it allows you to lock in the capital gains at a fixed value while deferring the recognition of the gain until payments are made under the promissory note. This strategy can effectively transfer the appreciation in value to the trust beneficiaries.

What type of partnerships should you choose - General Partners (GP), Limited Partnerships (LP), Limited Liability Partnership (LLP) or Limited Liability Limited Partnership (LLLP). Avoid general partnerships which expose personal assets to business liabilities. (Read More)

A value gap is the difference between what a seller thinks his/her business is worth and what the actual fair market value of the business-increase your value (decrease your "Gap") with strong management team,loyal & diverse customer base, competitive advantage & scaleable & efficient operation.

What is an estate tax and a gift tax and how are they different? The federal estate tax applies to the transfer of property at death. The gift tax applies to transfers made while a person is living. The generation-skipping transfer (GST) tax is an additional tax on a transfer of property that skips one or more generations.